OCS Scientific Committee Meeting Summary - Gulf of Mexico OCS
Region Update
On a Gulf-wide basis there are now over 7,700 active leases in the Gulf of Mexico with
4,008 platforms in place on the OCS. Regarding the latter statistic, this is the first
time the 4,000 mark has been broken in the Gulf of Mexico. With regard to deep
water—water depths greater than 1,000 feet—industry interest and activity remain
very high and continues to grow at a rapid rate. For example, in 1990 about four percent
of the oil and less than one percent of the natural gas produced from the Gulf of Mexico
OCS was from deep water. By the end of 1999, more than 50 percent of the Gulf of
Mexico’s oil production and 20 percent of its natural gas was from that area.
Of special interest is the fact that more and more leasing and development in the
ultra-deep waters, that is, water depths of 2,600 feet and greater, is taking place.
Companies currently hold more than 3,300 leases in ultra-deep waters.
Recently, the MMS received an exploration plan in 8,902 feet of water and areas in depths
of 10,000 feet have already been leased. One of these leased blocks sits in 13,000 feet of
water.
One of MMS’s major challenges is keeping abreast of the technological changes and
being able to respond in a timely manner. One current challenge is the possible use of
FPSO systems in the deep water areas of the Central and Western Gulf of Mexico. To
adequately evaluate potential environmental effects from FPSO systems, the MMS has
contracted for preparation of an Environmental Impact Statement (EIS) to assess the
effects of using these systems. The draft EIS was completed in August and the final EIS
will be completed in January 2001. Preparation of the EIS was paid for by industry through
the DeepStar consortium.
The MMS-sponsored Comparative Risk Assessment, which looks at the risks associated with
FPSO systems in comparison to existing deep water facilities in the Gulf of Mexico, is
also expected to be completed in January. Texaco had applied for an application for
an FPSO system for their Fuji prospect but have since withdrawn that request. Thus, there
are no applications for FPSO systems at this time, although industry has discussed several
potential projects with the MMS.
The MMS has taken a very aggressive position regarding deep water environmental studies.
This effort has made amazing progress since the Gulf of Mexico OCS Region hosted a
Deepwater Workshop in April of 1997. One of the most important actions resulting from this
workshop was the formation of the SC’s Deepwater Subcommittee. While working under an
extremely compressed schedule, the Subcommittee was able to meet in the Gulf of
Mexico’s OCS Regional Office in October 1997, and again in October of 1998, and
another meeting is planned for early next year. The Subcommittee’s hard work resulted
in one the most extensive and interdisciplinary studies efforts the MMS has ever
conducted. Important deep water issues in all disciplines are being addressed
simultaneously and involve cooperative efforts with academia, industry, and other Federal
agencies.
The effects of seismic exploration on the marine environment have been an issue normally
secondary to other concerns in the Gulf of Mexico. During the last few years though, noise
in the ocean has been elevated as a significant environmental concern on both the national
and international scales. In view of this development and new exploration technology, the
MMS issued a contract to have an environmental assessment prepared on all geological and
geophysical activities subject to MMS permit in the Gulf of Mexico. This includes seismic
operations, side-scan sonar, gravity coring, and related activities. This environmental
assessment is expected to be available sometime during Spring 2001.
The Gulf OCS Region completed a draft EIS for the proposed Destin Dome 56 Unit development
project in the Eastern Gulf of Mexico, 25 miles off of Pensacola. The draft EIS was
released in August 1999 and public hearings were held in September 1999. The final EIS is
currently scheduled to be made available for public review in December 2000. The State of
Florida has determined that the project is not consistent with its Coastal Zone Management
Plan and the Department of Commerce is currently determining its position on this issue.
This needs to be resolved before any action can be taken on the development plan.
Lastly for the Gulf of Mexico, the MMS has also just begun the planning process for the
first sale to be considered in the Eastern Gulf of Mexico in over 12 years (Sale 181). The
sale, if approved, is tentatively proposed for late 2001 and involves acreage off of
Alabama and Florida. Most of the acreage to be potentially leased off of Florida is in
deep water and well away from the coast.
For more information, contact Julie Reynolds.
